December 5, 2016 / 4:45 PM / 2 years ago

Prosecutors seek to close Prada CEO tax case: sources

Prada's Chief Executive Patrizio Bertelli (L) poses with his wife, fashion designer Miuccia Prada, after attending a fashion show as part of an investors launching presentation ahead of Prada's IPO in Hong Kong June 7, 2011. REUTERS/Bobby Yip

MILAN (Reuters) - Prosecutors in Milan have asked a judge to drop a tax investigation involving Italian fashion house Prada’s chief executive Miuccia Prada and her husband and co-CEO Patrizio Bertelli, sources told Reuters on Monday.

Prada and its subsidiaries, including the Miu Miu, Church’s and Car Shoe brands, are not involved in the near three-year probe into alleged tax avoidance by Prada and Bertelli.

The investigation, which began in January 2014, is one of many involving high-profile Italian entrepreneurs following a more interventionist approach by the country’s tax authorities.

Milan prosecutors opened the case after Prada’s family holding completed a process of voluntary disclosure to Italy’s tax revenue agency, which involved repatriating assets it held in Luxembourg and the Netherlands.

Prada and Bertelli paid more than 400 million euros ($429 million) to settle their tax positions, but under Italian law this did not stop a separate investigation by magistrates.

The prosecutors filed the request to a Judge for Preliminary Investigations on the grounds that the alleged tax avoidance was canceled by the payment of the tax debt and Prada and Bertelli should not be punished, a document seen by Reuters showed.

Representatives for Prada and Bertelli could not immediately be reached for comment.

Reporting by Emilio Parodi; Writing by Giulia Segreti; Editing by Alexander Smith

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